Solid H1, interim dividend +6% implies confidence
Mattioli Woods (MW) has reported a solid set of interims in challenging market conditions and its Management maintains a confident outlook. They have backed this up by increasing the interim dividend 6% from 8.3p to 8.8pTotal client assets closed H1 on £14.6bn, a 3.2% fall y-o-y (£15.1bn on 30 Nov 21): a creditable performance considering huge market and economic uncertainty prevailed. Revenue increased 10% y-o-y from £49.9m in H1 22 to £54.9m in in H1-23, with organic revenue growing 2.2%. Adjusted EBITDA fell from £15.8m to £15.0m on a higher cost base, but PBT increased 46% from £3.3m to £4.8m, while basic EPS jumped 69% from 3.5p to 5.9p
Our revenue forecasts have been trimmed by around 3%, but management have indicated that cost reductions, mostly variable staff pay, should result in the group delivering profits roughly in line with previous forecasts. Encouragingly, MW’s net cash position remained robust at £38.3m and it has no debt.
We keep our fundamental valuation at 950p per share (more than 50% above the current share price), using a DCF methodology with conservative assumptions. In addition, MW’s PER of 12.9 (using adj. PAT) is currently well below a peer group median of 17.8
Mattioli Woods provides pension consulting and administration, wealth management, asset management and employee benefits consultancy. Co.'s operating segments comprise:Pension consultancy and administration, which include setting up and administering pension schemes, as well as providing consultancy services for one-off activities; Investment and asset management, which manages and placing of investments on behalf of clients; Property management, which manages collective property investment vehicles, facilitates direct commercial property investments on behalf of clients; and Employee benefits, which assists its corporate clients with employee engagement.
Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.
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